Bright Dairy is set to lose its majority shareholding in New Zealand's Synlait Milk when the dairy processor lists on the New Zealand stock exchange this month.

Synlait on June 24 issued a prospectus in advance of its bid to raise 75 million NZ dollars ($58.04 million) in its initial public offering.

The capital raised would help pay down debt and fund Synlait's growth initiatives, which include a new extraction and purification plant to produce lactoferrin, an important ingredient in some infant formula products, and other facilities.

John Penno, Managing Director and co-founder of Synlait Milk, said Bright Dairy had provided Synlait with valuable strategic insight into the Chinese market.